Quarterly report pursuant to Section 13 or 15(d)

Loans

v3.24.3
Loans
9 Months Ended
Sep. 30, 2024
Receivables [Abstract]  
Loans

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:

 

 

 

September 30, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

Retail

 

$

1,087,433

 

 

$

1,107,360

 

Hospitality

 

 

819,017

 

 

 

740,519

 

Office

 

 

571,580

 

 

 

574,981

 

Other (1)

 

 

1,369,294

 

 

 

1,366,534

 

Total commercial property loans

 

 

3,847,324

 

 

 

3,789,394

 

Construction

 

 

84,764

 

 

 

100,345

 

Residential (2)

 

 

939,285

 

 

 

962,661

 

Total real estate loans

 

 

4,871,373

 

 

 

4,852,400

 

Commercial and industrial loans (3)

 

 

879,092

 

 

 

747,819

 

Equipment financing agreements

 

 

507,279

 

 

 

582,215

 

Loans receivable

 

 

6,257,744

 

 

 

6,182,434

 

Allowance for credit losses

 

 

(69,163

)

 

 

(69,462

)

Loans receivable, net

 

$

6,188,581

 

 

$

6,112,972

 

 

(1)
Includes mixed-use, multifamily, industrial, gas stations, faith-based facilities, and medical; all other property types represent less than one percent of total loans receivable.
(2)
Includes $1.5 million and $1.9 million of home equity loans and lines, and $6.8 million and $4.5 million of personal loans at September 30, 2024 and December 31, 2023, respectively.
(3)
At September 30, 2024 and December 31, 2023, Paycheck Protection Program loans were $0.1 million and $0.2 million, respectively.

Accrued interest on loans was $18.7 million and $19.8 million at September 30, 2024 and December 31, 2023, respectively.

At September 30, 2024 and December 31, 2023, loans with carrying values of $2.44 billion and $2.36 billion, respectively, were pledged to secure advances from the FHLB.

Loans Held for Sale

The following is the activity for loans held for sale for the following periods:

 

 

 

Real Estate

 

 

Commercial and Industrial

 

 

Total

 

 

 

(in thousands)

 

Three months ended September 30, 2024

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

7,149

 

 

$

3,318

 

 

$

10,467

 

Originations and transfers

 

 

58,433

 

 

 

8,457

 

 

 

66,890

 

Sales

 

 

(14,697

)

 

 

(8,320

)

 

 

(23,017

)

Principal paydowns and amortization

 

 

(1

)

 

 

(3

)

 

 

(4

)

Balance at end of period

 

$

50,884

 

 

$

3,452

 

 

$

54,336

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30, 2023

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

5,544

 

 

$

1,749

 

 

$

7,293

 

Originations and transfers

 

 

12,588

 

 

 

13,398

 

 

 

25,986

 

Sales

 

 

(11,520

)

 

 

(9,490

)

 

 

(21,010

)

Principal paydowns and amortization

 

 

(75

)

 

 

(427

)

 

 

(502

)

Balance at end of period

 

$

6,537

 

 

$

5,230

 

 

$

11,767

 

 

 

 

 

Real Estate

 

 

Commercial and Industrial

 

 

Total

 

 

 

(in thousands)

 

Nine months ended September 30, 2024

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

8,792

 

 

$

3,221

 

 

$

12,013

 

Originations and transfers

 

 

88,619

 

 

 

25,866

 

 

 

114,485

 

Sales

 

 

(46,473

)

 

 

(25,621

)

 

 

(72,094

)

Principal payoffs and amortization

 

 

(54

)

 

 

(14

)

 

 

(68

)

Balance at end of period

 

$

50,884

 

 

$

3,452

 

 

$

54,336

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2023

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

3,775

 

 

$

4,268

 

 

$

8,043

 

Originations and transfers

 

 

43,468

 

 

 

31,420

 

 

 

74,888

 

Sales

 

 

(40,630

)

 

 

(30,022

)

 

 

(70,652

)

Principal payoffs and amortization

 

 

(76

)

 

 

(436

)

 

 

(512

)

Balance at end of period

 

$

6,537

 

 

$

5,230

 

 

$

11,767

 

 

The following table presents loans purchased by portfolio segment for the following periods:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

(in thousands)

 

Commercial real estate

 

$

1,773

 

 

$

 

 

$

8,107

 

 

$

 

Commercial and industrial

 

 

11,935

 

 

 

 

 

 

30,257

 

 

 

 

Residential real estate

 

 

10,744

 

 

 

 

 

 

15,922

 

 

 

 

Total

 

$

24,452

 

 

$

 

 

$

54,286

 

 

$

 

 

Allowance for Credit Losses

 

The following table details the information on the allowance for credit losses by portfolio segment for the following periods:

 

 

 

Real Estate

 

 

Commercial and Industrial

 

 

Equipment Financing Agreements

 

 

Total

 

 

 

(in thousands)

 

Three months ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

42,152

 

 

$

10,563

 

 

$

15,014

 

 

$

67,729

 

Charge-offs

 

 

(1,133

)

 

 

(190

)

 

 

(2,477

)

 

 

(3,800

)

Recoveries

 

 

729

 

 

 

1,679

 

 

 

516

 

 

 

2,924

 

Credit loss expense (recovery)

 

 

1,946

 

 

 

(2,269

)

 

 

2,633

 

 

 

2,310

 

Ending balance

 

$

43,694

 

 

$

9,783

 

 

$

15,686

 

 

$

69,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

43,054

 

 

$

16,028

 

 

$

11,942

 

 

$

71,024

 

Charge-offs

 

 

(216

)

 

 

(6,323

)

 

 

(2,831

)

 

 

(9,370

)

Recoveries

 

 

50

 

 

 

141

 

 

 

301

 

 

 

492

 

Credit loss expense

 

 

948

 

 

 

1,396

 

 

 

2,823

 

 

 

5,167

 

Ending balance

 

$

43,836

 

 

$

11,242

 

 

$

12,235

 

 

$

67,313

 

 

 

 

 

Real Estate

 

 

Commercial and Industrial

 

 

Equipment Financing Agreements

 

 

Total

 

 

 

(in thousands)

 

Nine months ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

45,499

 

 

$

10,257

 

 

$

13,706

 

 

$

69,462

 

Charge-offs

 

 

(1,226

)

 

 

(438

)

 

 

(6,598

)

 

 

(8,262

)

Recoveries

 

 

840

 

 

 

1,903

 

 

 

1,256

 

 

 

3,999

 

Credit loss expense (recovery)

 

 

(1,419

)

 

 

(1,939

)

 

 

7,322

 

 

 

3,964

 

Ending balance

 

$

43,694

 

 

$

9,783

 

 

$

15,686

 

 

$

69,163

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

44,026

 

 

$

15,267

 

 

$

12,230

 

 

$

71,523

 

Charge-offs

 

 

(627

)

 

 

(6,635

)

 

 

(7,052

)

 

 

(14,314

)

Recoveries

 

 

180

 

 

 

931

 

 

 

1,131

 

 

 

2,242

 

Credit loss expense

 

 

257

 

 

 

1,679

 

 

 

5,926

 

 

 

7,862

 

Ending balance

 

$

43,836

 

 

$

11,242

 

 

$

12,235

 

 

$

67,313

 

 

The table below presents the allowance for credit losses by portfolio segment as a percentage of the total allowance for credit losses and loans by portfolio segment as a percentage of the aggregate investment of loans receivable as of:

 

 

 

September 30, 2024

 

 

December 31, 2023

 

 

 

Allowance Amount

 

 

Percentage of Total Allowance

 

 

Total Loans

 

 

Percentage of Total Loans

 

 

Allowance Amount

 

 

Percentage of Total Allowance

 

 

Total Loans

 

 

Percentage of Total Loans

 

 

 

(dollars in thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

10,226

 

 

 

14.8

%

 

$

1,087,433

 

 

 

17.4

%

 

$

10,264

 

 

 

14.8

%

 

$

1,107,360

 

 

 

17.9

%

Hospitality

 

 

13,971

 

 

 

20.2

 

 

 

819,017

 

 

 

13.1

 

 

 

15,534

 

 

 

22.4

 

 

 

740,519

 

 

 

12.0

 

Office

 

 

3,879

 

 

 

5.6

 

 

 

571,580

 

 

 

9.1

 

 

 

3,024

 

 

 

4.4

 

 

 

574,981

 

 

 

9.3

 

Other

 

 

8,004

 

 

 

11.6

 

 

 

1,369,294

 

 

 

21.9

 

 

 

8,663

 

 

 

12.4

 

 

 

1,366,534

 

 

 

22.1

 

Total commercial property loans

 

 

36,080

 

 

 

52.2

 

 

 

3,847,324

 

 

 

61.5

 

 

 

37,485

 

 

 

54.0

 

 

 

3,789,394

 

 

 

61.3

 

Construction

 

 

1,698

 

 

 

2.5

 

 

 

84,764

 

 

 

1.4

 

 

 

2,756

 

 

 

4.0

 

 

 

100,345

 

 

 

1.6

 

Residential

 

 

5,916

 

 

 

8.6

 

 

 

939,285

 

 

 

15.0

 

 

 

5,258

 

 

 

7.5

 

 

 

962,661

 

 

 

15.6

 

Total real estate loans

 

 

43,694

 

 

 

63.3

 

 

 

4,871,373

 

 

 

77.9

 

 

 

45,499

 

 

 

65.5

 

 

 

4,852,400

 

 

 

78.5

 

Commercial and industrial loans

 

 

9,783

 

 

 

14.0

 

 

 

879,092

 

 

 

14.0

 

 

 

10,257

 

 

 

14.8

 

 

 

747,819

 

 

 

12.1

 

Equipment financing agreements

 

 

15,686

 

 

 

22.7

 

 

 

507,279

 

 

 

8.1

 

 

 

13,706

 

 

 

19.7

 

 

 

582,215

 

 

 

9.4

 

Total

 

$

69,163

 

 

 

100.0

%

 

$

6,257,744

 

 

 

100.0

%

 

$

69,462

 

 

 

100.0

%

 

$

6,182,434

 

 

 

100.0

%

The following table represents the amortized cost basis of collateral-dependent loans by class of loans, for which repayment is expected to be obtained through the sale of the underlying collateral, as of:

 

 

 

September 30, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

Retail

 

$

1,683

 

 

$

1,530

 

Hospitality

 

 

266

 

 

 

338

 

Other

 

 

 

 

 

305

 

Total commercial property loans

 

 

1,949

 

 

 

2,173

 

Construction

 

 

1,194

 

 

 

 

Residential

 

 

1,873

 

 

 

1

 

Total real estate loans

 

 

5,016

 

 

 

2,174

 

Commercial and industrial loans

 

 

 

 

 

5,178

 

Total

 

$

5,016

 

 

$

7,352

 

Loan Quality Indicators

As part of the on-going monitoring of the quality of our loans portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 1 to 8) for each loan in our portfolio. Third-party loan reviews are conducted annually on a sample basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows:

Pass and Pass-Watch: Pass and Pass-Watch loans, grades (1-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention”, “Substandard”

or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.

Special Mention: A Special Mention loan, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans that have significant actual, not potential, weaknesses are considered more severely classified.

Substandard: A Substandard loan, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected.

Doubtful: A Doubtful loan, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan, and therefore the amount or timing of a possible loss cannot be determined at the current time.

Loss: A loan classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified as Loss will be charged off in a timely manner.

Under regulatory guidance, loans graded special mention or worse are considered criticized loans, and loans graded substandard or worse are considered classified loans.

Loans by Vintage Year and Risk Rating

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

 

 

(in thousands)

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

`

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

$

433,413

 

 

$

558,091

 

 

$

941,253

 

 

$

821,086

 

 

$

559,560

 

 

$

343,178

 

 

$

62,712

 

 

$

3,719,293

 

Special Mention

 

 

 

 

 

32,950

 

 

 

 

 

 

 

 

 

1,302

 

 

 

76,970

 

 

 

 

 

 

111,222

 

Classified

 

 

523

 

 

 

 

 

 

6,999

 

 

 

3,192

 

 

 

71

 

 

 

6,024

 

 

 

 

 

 

16,809

 

Total commercial property

 

 

433,936

 

 

 

591,041

 

 

 

948,252

 

 

 

824,278

 

 

 

560,933

 

 

 

426,172

 

 

 

62,712

 

 

 

3,847,324

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

93

 

 

 

 

 

 

93

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17

)

 

 

(728

)

 

 

 

 

 

(745

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

56,092

 

 

 

27,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83,570

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified

 

 

1,194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,194

 

Total construction

 

 

57,286

 

 

 

27,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

84,764

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,133

 

 

 

 

 

 

 

 

 

1,133

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,133

 

 

 

 

 

 

 

 

 

1,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

82,446

 

 

 

217,473

 

 

 

361,552

 

 

 

148,635

 

 

 

11,851

 

 

 

109,407

 

 

 

7,347

 

 

 

938,711

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

250

 

 

 

250

 

Classified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

324

 

 

 

 

 

 

 

 

 

324

 

Total residential

 

 

82,446

 

 

 

217,473

 

 

 

361,552

 

 

 

148,635

 

 

 

12,175

 

 

 

109,407

 

 

 

7,597

 

 

 

939,285

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

571,951

 

 

 

803,042

 

 

 

1,302,805

 

 

 

969,721

 

 

 

571,411

 

 

 

452,585

 

 

 

70,059

 

 

 

4,741,574

 

Special Mention

 

 

 

 

 

32,950

 

 

 

 

 

 

 

 

 

1,302

 

 

 

76,970

 

 

 

250

 

 

 

111,472

 

Classified

 

 

1,717

 

 

 

 

 

 

6,999

 

 

 

3,192

 

 

 

395

 

 

 

6,024

 

 

 

 

 

 

18,327

 

Total real estate loans

 

 

573,668

 

 

 

835,992

 

 

 

1,309,804

 

 

 

972,913

 

 

 

573,108

 

 

 

535,579

 

 

 

70,309

 

 

 

4,871,373

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,133

 

 

 

93

 

 

 

 

 

 

1,226

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,116

 

 

 

(730

)

 

 

 

 

 

386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

222,285

 

 

 

63,975

 

 

 

124,076

 

 

 

45,344

 

 

 

14,705

 

 

 

15,257

 

 

 

372,867

 

 

 

858,509

 

Special Mention

 

 

20,060

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44

 

 

 

 

 

 

20,104

 

Classified

 

 

154

 

 

 

 

 

 

78

 

 

 

 

 

 

 

 

 

247

 

 

 

 

 

 

479

 

Total commercial and industrial loans

 

 

242,499

 

 

 

63,975

 

 

 

124,154

 

 

 

45,344

 

 

 

14,705

 

 

 

15,548

 

 

 

372,867

 

 

 

879,092

 

YTD gross charge-offs

 

 

 

 

 

82

 

 

 

168

 

 

 

 

 

 

11

 

 

 

175

 

 

 

2

 

 

 

438

 

YTD net charge-offs (recoveries)

 

 

 

 

 

82

 

 

 

163

 

 

 

(13

)

 

 

11

 

 

 

114

 

 

 

(1,822

)

 

 

(1,465

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment financing agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

107,615

 

 

 

160,910

 

 

 

148,909

 

 

 

63,155

 

 

 

11,422

 

 

 

5,696

 

 

 

 

 

 

497,707

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified

 

 

258

 

 

 

1,942

 

 

 

4,350

 

 

 

2,488

 

 

 

219

 

 

 

315

 

 

 

 

 

 

9,572

 

Total equipment financing agreements

 

 

107,873

 

 

 

162,852

 

 

 

153,259

 

 

 

65,643

 

 

 

11,641

 

 

 

6,011

 

 

 

 

 

 

507,279

 

YTD gross charge-offs

 

 

 

 

 

844

 

 

 

3,803

 

 

 

1,404

 

 

 

318

 

 

 

229

 

 

 

 

 

 

6,598

 

YTD net charge-offs (recoveries)

 

 

 

 

 

795

 

 

 

3,315

 

 

 

1,100

 

 

 

259

 

 

 

(127

)

 

 

 

 

 

5,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

901,851

 

 

 

1,027,927

 

 

 

1,575,790

 

 

 

1,078,220

 

 

 

597,538

 

 

 

473,538

 

 

 

442,926

 

 

 

6,097,790

 

Special Mention

 

 

20,060

 

 

 

32,950

 

 

 

 

 

 

 

 

 

1,302

 

 

 

77,014

 

 

 

250

 

 

 

131,576

 

Classified

 

 

2,129

 

 

 

1,942

 

 

 

11,427

 

 

 

5,680

 

 

 

614

 

 

 

6,586

 

 

 

 

 

 

28,378

 

Total loans receivable

 

$

924,040

 

 

$

1,062,819

 

 

$

1,587,217

 

 

$

1,083,900

 

 

$

599,454

 

 

$

557,138

 

 

$

443,176

 

 

$

6,257,744

 

YTD gross charge-offs

 

 

 

 

 

926

 

 

 

3,971

 

 

 

1,404

 

 

 

1,462

 

 

 

497

 

 

 

2

 

 

 

8,262

 

YTD net charge-offs (recoveries)

 

 

 

 

 

877

 

 

 

3,478

 

 

 

1,087

 

 

 

1,386

 

 

 

(743

)

 

 

(1,822

)

 

 

4,263

 

 

(1)
Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

$

683,819

 

 

$

986,822

 

 

$

858,821

 

 

$

572,950

 

 

$

378,067

 

 

$

238,400

 

 

$

30,236

 

 

$

3,749,115

 

Special Mention

 

 

4,400

 

 

 

3,997

 

 

 

3,271

 

 

 

5,670

 

 

 

711

 

 

 

2,310

 

 

 

1,406

 

 

 

21,765

 

Classified

 

 

3,065

 

 

 

1,080

 

 

 

4,899

 

 

 

 

 

 

5,578

 

 

 

3,892

 

 

 

 

 

 

18,514

 

Total commercial property

 

 

691,284

 

 

 

991,899

 

 

 

866,991

 

 

 

578,620

 

 

 

384,356

 

 

 

244,602

 

 

 

31,642

 

 

 

3,789,394

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

411

 

 

 

 

 

 

216

 

 

 

 

 

 

627

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

403

 

 

 

 

 

 

(81

)

 

 

 

 

 

322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

72,039

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

72,039

 

Special Mention

 

 

 

 

 

 

 

 

28,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,306

 

Classified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total construction

 

 

72,039

 

 

 

 

 

 

28,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100,345

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

290,196

 

 

 

375,712

 

 

 

158,618

 

 

 

12,656

 

 

 

217

 

 

 

119,736

 

 

 

5,025

 

 

 

962,160

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

500

 

 

 

500

 

Classified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

1

 

Total residential

 

 

290,196

 

 

 

375,712

 

 

 

158,618

 

 

 

12,656

 

 

 

217

 

 

 

119,737

 

 

 

5,525

 

 

 

962,661

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

1,046,054

 

 

 

1,362,534

 

 

 

1,017,439

 

 

 

585,606

 

 

 

378,284

 

 

 

358,136

 

 

 

35,261

 

 

 

4,783,314

 

Special Mention

 

 

4,400

 

 

 

3,997

 

 

 

31,577

 

 

 

5,670

 

 

 

711

 

 

 

2,310

 

 

 

1,906

 

 

 

50,571

 

Classified

 

 

3,065

 

 

 

1,080

 

 

 

4,899

 

 

 

 

 

 

5,578

 

 

 

3,893

 

 

 

 

 

 

18,515

 

Total real estate loans

 

 

1,053,519

 

 

 

1,367,611

 

 

 

1,053,915

 

 

 

591,276

 

 

 

384,573

 

 

 

364,339

 

 

 

37,167

 

 

 

4,852,400

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

411

 

 

 

 

 

 

216

 

 

 

 

 

 

627

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

403

 

 

 

 

 

 

(88

)

 

 

 

 

 

315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

177,864

 

 

 

169,209

 

 

 

84,198

 

 

 

31,348

 

 

 

9,971

 

 

 

12,920

 

 

 

242,044

 

 

 

727,554

 

Special Mention

 

 

 

 

 

14,578

 

 

 

 

 

 

102

 

 

 

 

 

 

65

 

 

 

(1

)

 

 

14,744

 

Classified

 

 

329

 

 

 

 

 

 

 

 

 

 

 

 

79

 

 

 

174

 

 

 

4,939

 

 

 

5,521

 

Total commercial and industrial loans

 

 

178,193

 

 

 

183,787

 

 

 

84,198

 

 

 

31,450

 

 

 

10,050

 

 

 

13,159

 

 

 

246,982

 

 

 

747,819

 

YTD gross charge-offs

 

 

 

 

 

17

 

 

 

 

 

 

 

 

 

110

 

 

 

410

 

 

 

6,120

 

 

 

6,657

 

YTD net charge-offs (recoveries)

 

 

 

 

 

5

 

 

 

(7

)

 

 

 

 

 

101

 

 

 

(6,621

)

 

 

6,090

 

 

 

(432

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment financing agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

215,670

 

 

 

211,228

 

 

 

101,622

 

 

 

24,340

 

 

 

18,832

 

 

 

3,192

 

 

 

 

 

 

574,884

 

Special Mention

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified

 

 

392

 

 

 

4,171

 

 

 

1,945

 

 

 

365

 

 

 

401

 

 

 

57

 

 

 

 

 

 

7,331

 

Total equipment financing agreements

 

 

216,062

 

 

 

215,399

 

 

 

103,567

 

 

 

24,705

 

 

 

19,233

 

 

 

3,249

 

 

 

 

 

 

582,215

 

YTD gross charge-offs

 

 

178

 

 

 

3,944

 

 

 

3,267

 

 

 

386

 

 

 

799

 

 

 

232

 

 

 

 

 

 

8,806

 

YTD net charge-offs (recoveries)

 

 

178

 

 

 

3,744

 

 

 

2,858

 

 

 

244

 

 

 

250

 

 

 

(114

)

 

 

 

 

 

7,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass / Pass-Watch

 

 

1,439,588

 

 

 

1,742,971

 

 

 

1,203,259

 

 

 

641,294

 

 

 

407,087

 

 

 

374,248

 

 

 

277,305

 

 

 

6,085,752

 

Special Mention

 

 

4,400

 

 

 

18,575

 

 

 

31,577

 

 

 

5,772

 

 

 

711

 

 

 

2,375

 

 

 

1,905

 

 

 

65,315

 

Classified

 

 

3,786

 

 

 

5,251

 

 

 

6,844

 

 

 

365

 

 

 

6,058

 

 

 

4,124

 

 

 

4,939

 

 

 

31,367

 

Total loans receivable

 

$

1,447,774

 

 

$

1,766,797

 

 

$

1,241,680

 

 

$

647,431

 

 

$

413,856

 

 

$

380,747

 

 

$

284,149

 

 

$

6,182,434

 

YTD gross charge-offs

 

 

178

 

 

 

3,961

 

 

 

3,267

 

 

 

797

 

 

 

909

 

 

 

858

 

 

 

6,120

 

 

 

16,090

 

YTD net charge-offs (recoveries)

 

 

178

 

 

 

3,749

 

 

 

2,851

 

 

 

647

 

 

 

351

 

 

 

(6,823

)

 

 

6,090

 

 

 

7,043

 

 

(1)
Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

Loans by Vintage Year and Payment Performance

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

 

 

(in thousands)

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

433,936

 

 

$

591,041

 

 

$

947,246

 

 

$

824,278

 

 

$

560,933

 

 

$

424,634

 

 

$

62,712

 

 

$

3,844,780

 

Nonperforming

 

 

 

 

 

 

 

 

1,006

 

 

 

 

 

 

 

 

 

1,538

 

 

 

 

 

 

2,544

 

Total commercial property

 

 

433,936

 

 

 

591,041

 

 

 

948,252

 

 

 

824,278

 

 

 

560,933

 

 

 

426,172

 

 

 

62,712

 

 

 

3,847,324

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

93

 

 

 

 

 

 

93

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17

)

 

 

(728

)

 

 

 

 

 

(745

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

56,092

 

 

 

27,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

83,570

 

Nonperforming

 

 

1,194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,194

 

Total construction

 

 

57,286

 

 

 

27,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

84,764

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,133

 

 

 

 

 

 

 

 

 

1,133

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,133

 

 

 

 

 

 

 

 

 

1,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

82,446

 

 

 

217,473

 

 

 

360,970

 

 

 

148,635

 

 

 

11,849

 

 

 

108,444

 

 

 

7,597

 

 

 

937,414

 

Nonperforming

 

 

 

 

 

 

 

 

582

 

 

 

 

 

 

326

 

 

 

963

 

 

 

 

 

 

1,871

 

Total residential

 

 

82,446

 

 

 

217,473

 

 

 

361,552

 

 

 

148,635

 

 

 

12,175

 

 

 

109,407

 

 

 

7,597

 

 

 

939,285

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

572,474

 

 

 

835,992

 

 

 

1,308,216

 

 

 

972,913

 

 

 

572,782

 

 

 

533,078

 

 

 

70,309

 

 

 

4,865,764

 

Nonperforming

 

 

1,194

 

 

 

 

 

 

1,588

 

 

 

 

 

 

326

 

 

 

2,501

 

 

 

 

 

 

5,609

 

Total real estate loans

 

 

573,668

 

 

 

835,992

 

 

 

1,309,804

 

 

 

972,913

 

 

 

573,108

 

 

 

535,579

 

 

 

70,309

 

 

 

4,871,373

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,133

 

 

 

93

 

 

 

 

 

 

1,226

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,116

 

 

 

(730

)

 

 

 

 

 

386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

242,499

 

 

 

63,733

 

 

 

124,154

 

 

 

45,344

 

 

 

14,705

 

 

 

15,548

 

 

 

372,867

 

 

 

878,850

 

Nonperforming

 

 

 

 

 

242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

242

 

Total commercial and industrial loans

 

 

242,499

 

 

 

63,975

 

 

 

124,154

 

 

 

45,344

 

 

 

14,705

 

 

 

15,548

 

 

 

372,867

 

 

 

879,092

 

YTD gross charge-offs

 

 

 

 

 

82

 

 

 

168

 

 

 

 

 

 

11

 

 

 

175

 

 

 

2

 

 

 

438

 

YTD net charge-offs (recoveries)

 

 

 

 

 

82

 

 

 

163

 

 

 

(13

)

 

 

11

 

 

 

114

 

 

 

(1,822

)

 

 

(1,465

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment financing agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

107,615

 

 

 

160,910

 

 

 

148,875

 

 

 

63,122

 

 

 

11,422

 

 

 

5,696

 

 

 

 

 

 

497,640

 

Nonperforming

 

 

258

 

 

 

1,942

 

 

 

4,384

 

 

 

2,521

 

 

 

219

 

 

 

315

 

 

 

 

 

 

9,639

 

Total equipment financing agreements

 

 

107,873

 

 

 

162,852

 

 

 

153,259

 

 

 

65,643

 

 

 

11,641

 

 

 

6,011

 

 

 

 

 

 

507,279

 

YTD gross charge-offs

 

 

 

 

 

844

 

 

 

3,803

 

 

 

1,404

 

 

 

318

 

 

 

229

 

 

 

 

 

 

6,598

 

YTD net charge-offs (recoveries)

 

 

 

 

 

795

 

 

 

3,315

 

 

 

1,100

 

 

 

259

 

 

 

(127

)

 

 

 

 

 

5,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

922,588

 

 

 

1,060,635

 

 

 

1,581,245

 

 

 

1,081,379

 

 

 

598,909

 

 

 

554,322

 

 

 

443,176

 

 

 

6,242,254

 

Nonperforming

 

 

1,452

 

 

 

2,184

 

 

 

5,972

 

 

 

2,521

 

 

 

545

 

 

 

2,816

 

 

 

 

 

 

15,490

 

Total loans receivable

 

$

924,040

 

 

$

1,062,819

 

 

$

1,587,217

 

 

$

1,083,900

 

 

$

599,454

 

 

$

557,138

 

 

$

443,176

 

 

$

6,257,744

 

YTD gross charge-offs

 

 

 

 

 

926

 

 

 

3,971

 

 

 

1,404

 

 

 

1,462

 

 

 

497

 

 

 

2

 

 

 

8,262

 

YTD net charge-offs (recoveries)

 

 

 

 

 

877

 

 

 

3,478

 

 

 

1,087

 

 

 

1,386

 

 

 

(743

)

 

 

(1,822

)

 

 

4,263

 

 

(1)
Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

 

 

 

Term Loans

 

 

 

 

 

 

 

 

 

Amortized Cost Basis by Origination Year (1)

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

2021

 

 

2020

 

 

2019

 

 

Prior

 

 

Revolving
Loans
Amortized
Cost Basis

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

$

689,449

 

 

$

991,899

 

 

$

866,841

 

 

$

578,620

 

 

$

384,275

 

 

$

243,819

 

 

$

31,642

 

 

$

3,786,545

 

Nonperforming

 

 

1,835

 

 

 

 

 

 

150

 

 

 

 

 

 

81

 

 

 

783

 

 

 

 

 

 

2,849

 

Total commercial property

 

 

691,284

 

 

 

991,899

 

 

 

866,991

 

 

 

578,620

 

 

 

384,356

 

 

 

244,602

 

 

 

31,642

 

 

 

3,789,394

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

411

 

 

 

 

 

 

216

 

 

 

 

 

 

627

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

403

 

 

 

 

 

 

(81

)

 

 

 

 

 

322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

72,039

 

 

 

 

 

 

28,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100,345

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total construction

 

 

72,039

 

 

 

 

 

 

28,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100,345

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

290,196

 

 

 

375,712

 

 

 

158,618

 

 

 

12,656

 

 

 

217

 

 

 

119,736

 

 

 

5,525

 

 

 

962,660

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

1

 

Total residential

 

 

290,196

 

 

 

375,712

 

 

 

158,618

 

 

 

12,656

 

 

 

217

 

 

 

119,737

 

 

 

5,525

 

 

 

962,661

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

 

 

 

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total real estate loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

1,051,684

 

 

 

1,367,611

 

 

 

1,053,765

 

 

 

591,276

 

 

 

384,492

 

 

 

363,555

 

 

 

37,167

 

 

 

4,849,550

 

Nonperforming

 

 

1,835

 

 

 

 

 

 

150

 

 

 

 

 

 

81

 

 

 

784

 

 

 

 

 

 

2,850

 

Total real estate loans

 

 

1,053,519

 

 

 

1,367,611

 

 

 

1,053,915

 

 

 

591,276

 

 

 

384,573

 

 

 

364,339

 

 

 

37,167

 

 

 

4,852,400

 

YTD gross charge-offs

 

 

 

 

 

 

 

 

 

 

 

411

 

 

 

 

 

 

216

 

 

 

 

 

 

627

 

YTD net charge-offs (recoveries)

 

 

 

 

 

 

 

 

 

 

 

403

 

 

 

 

 

 

(88

)

 

 

 

 

 

315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

177,864

 

 

 

183,787

 

 

 

84,198

 

 

 

31,415

 

 

 

10,050

 

 

 

13,066

 

 

 

242,134

 

 

 

742,514

 

Nonperforming

 

 

329

 

 

 

 

 

 

 

 

 

35

 

 

 

 

 

 

93

 

 

 

4,848

 

 

 

5,305

 

Total commercial and industrial loans

 

 

178,193

 

 

 

183,787

 

 

 

84,198

 

 

 

31,450

 

 

 

10,050

 

 

 

13,159

 

 

 

246,982

 

 

 

747,819

 

YTD gross charge-offs

 

 

 

 

 

17

 

 

 

 

 

 

 

 

 

110

 

 

 

410

 

 

 

6,120

 

 

 

6,657

 

YTD net charge-offs (recoveries)

 

 

 

 

 

5

 

 

 

(7

)

 

 

 

 

 

101

 

 

 

(6,621

)

 

 

6,090

 

 

 

(432

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equipment financing agreements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

215,670

 

 

 

211,228

 

 

 

101,622

 

 

 

24,340

 

 

 

18,844

 

 

 

3,192

 

 

 

 

 

 

574,896

 

Nonperforming

 

 

392

 

 

 

4,171

 

 

 

1,945

 

 

 

365

 

 

 

389

 

 

 

57

 

 

 

 

 

 

7,319

 

Total equipment financing agreements

 

 

216,062

 

 

 

215,399

 

 

 

103,567

 

 

 

24,705

 

 

 

19,233

 

 

 

3,249

 

 

 

 

 

 

582,215

 

YTD gross charge-offs

 

 

178

 

 

 

3,944

 

 

 

3,267

 

 

 

386

 

 

 

799

 

 

 

232

 

 

 

 

 

 

8,806

 

YTD net charge-offs (recoveries)

 

 

178

 

 

 

3,744

 

 

 

2,858

 

 

 

244

 

 

 

250

 

 

 

(114

)

 

 

 

 

 

7,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

 

 

1,445,218

 

 

 

1,762,626

 

 

 

1,239,585

 

 

 

647,031

 

 

 

413,386

 

 

 

379,813

 

 

 

279,301

 

 

 

6,166,960

 

Nonperforming

 

 

2,556

 

 

 

4,171

 

 

 

2,095

 

 

 

400

 

 

 

470

 

 

 

934

 

 

 

4,848

 

 

 

15,474

 

Total loans receivable

 

$

1,447,774

 

 

$

1,766,797

 

 

$

1,241,680

 

 

$

647,431

 

 

$

413,856

 

 

$

380,747

 

 

$

284,149

 

 

$

6,182,434

 

YTD gross charge-offs

 

 

178

 

 

 

3,961

 

 

 

3,267

 

 

 

797

 

 

 

909

 

 

 

858

 

 

 

6,120

 

 

 

16,090

 

YTD net charge-offs (recoveries)

 

 

178

 

 

 

3,749

 

 

 

2,851

 

 

 

647

 

 

 

351

 

 

 

(6,823

)

 

 

6,090

 

 

 

7,043

 

 

(1)
Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

 

The following is an aging analysis of loans, including loans on nonaccrual status, disaggregated by loan class, as of:

 

 

 

30-59
Days
Past Due

 

 

60-89
Days
Past Due

 

 

90 Days
or More
Past Due

 

 

Total
Past Due

 

 

Current

 

 

Total

 

 

 

(in thousands)

 

September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

870

 

 

$

262

 

 

$

 

 

$

1,132

 

 

$

1,086,301

 

 

$

1,087,433

 

Hospitality

 

 

775

 

 

 

 

 

 

 

 

 

775

 

 

 

818,242

 

 

 

819,017

 

Office

 

 

812

 

 

 

 

 

 

 

 

 

812

 

 

 

570,768

 

 

 

571,580

 

Other

 

 

253

 

 

 

350

 

 

 

 

 

 

603

 

 

 

1,368,691

 

 

 

1,369,294

 

Total commercial property loans

 

 

2,710

 

 

 

612

 

 

 

 

 

 

3,322

 

 

 

3,844,002

 

 

 

3,847,324

 

Construction

 

 

1,194

 

 

 

 

 

 

 

 

 

1,194

 

 

 

83,570

 

 

 

84,764

 

Residential

 

 

3,642

 

 

 

2,856

 

 

 

 

 

 

6,498

 

 

 

932,787

 

 

 

939,285

 

Total real estate loans

 

 

7,546

 

 

 

3,468

 

 

 

 

 

 

11,014

 

 

 

4,860,359

 

 

 

4,871,373

 

Commercial and industrial loans

 

 

627

 

 

 

206

 

 

 

242

 

 

 

1,075

 

 

 

878,017

 

 

 

879,092

 

Equipment financing agreements

 

 

6,287

 

 

 

2,751

 

 

 

5,734

 

 

 

14,772

 

 

 

492,507

 

 

 

507,279

 

Total loans receivable

 

$

14,460

 

 

$

6,425

 

 

$

5,976

 

 

$

26,861

 

 

$

6,230,883

 

 

$

6,257,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

632

 

 

$

 

 

$

 

 

$

632

 

 

$

1,106,728

 

 

$

1,107,360

 

Hospitality

 

 

 

 

 

150

 

 

 

22

 

 

 

172

 

 

 

740,347

 

 

 

740,519

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

574,981

 

 

 

574,981

 

Other

 

 

592

 

 

 

 

 

 

 

 

 

592

 

 

 

1,365,942

 

 

 

1,366,534

 

Total commercial property loans

 

 

1,224

 

 

 

150

 

 

 

22

 

 

 

1,396

 

 

 

3,787,998

 

 

 

3,789,394

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100,345

 

 

 

100,345

 

Residential

 

 

521

 

 

 

336

 

 

 

1

 

 

 

858

 

 

 

961,803

 

 

 

962,661

 

Total real estate loans

 

 

1,745

 

 

 

486

 

 

 

23

 

 

 

2,254

 

 

 

4,850,146

 

 

 

4,852,400

 

Commercial and industrial loans

 

 

76

 

 

 

120

 

 

 

5,178

 

 

 

5,374

 

 

 

742,445

 

 

 

747,819

 

Equipment financing agreements

 

 

7,138

 

 

 

2,134

 

 

 

4,551

 

 

 

13,823

 

 

 

568,392

 

 

 

582,215

 

Total loans receivable

 

$

8,959

 

 

$

2,740

 

 

$

9,752

 

 

$

21,451

 

 

$

6,160,983

 

 

$

6,182,434

 

 

Nonaccrual Loans and Nonperforming Assets

 

The following tables represent the amortized cost basis of loans on nonaccrual status and loans past due 90 days and still accruing as of:

 

 

 

September 30, 2024

 

 

 

Nonaccrual Loans
With
No Allowance for
Credit Losses

 

 

Nonaccrual Loans
With
Allowance for
Credit Losses

 

 

Loans
Past Due
90 Days Still
Accruing

 

 

Total
Nonperforming
Loans

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

1,803

 

 

$

509

 

 

$

 

 

$

2,312

 

Hospitality

 

 

224

 

 

 

 

 

 

 

 

 

224

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

9

 

 

 

 

 

 

9

 

Total commercial property loans

 

 

2,027

 

 

 

518

 

 

 

 

 

 

2,545

 

Construction

 

 

1,194

 

 

 

 

 

 

 

 

 

1,194

 

Residential

 

 

1,871

 

 

 

 

 

 

 

 

 

1,871

 

Total real estate loans

 

 

5,092

 

 

 

518

 

 

 

 

 

 

5,610

 

Commercial and industrial loans

 

 

 

 

 

 

 

 

241

 

 

 

241

 

Equipment financing agreements

 

 

566

 

 

 

9,073

 

 

 

 

 

 

9,639

 

Total

 

$

5,658

 

 

$

9,591

 

 

$

241

 

 

$

15,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

Nonaccrual Loans
With
No Allowance for
Credit Losses

 

 

Nonaccrual Loans
With
Allowance for
Credit Losses

 

 

Loans
Past Due
90 Days Still
Accruing

 

 

Total
Nonperforming
Loans

 

 

 

(in thousands)

 

Real estate loans:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial property

 

 

 

 

 

 

 

 

 

 

 

 

Retail

 

$

1,717

 

 

$

321

 

 

$

 

 

$

2,038

 

Hospitality

 

 

338

 

 

 

150

 

 

 

 

 

 

488

 

Other

 

 

305

 

 

 

18

 

 

 

 

 

 

323

 

Total commercial property loans

 

 

2,360

 

 

 

489

 

 

 

 

 

 

2,849

 

Residential

 

 

1

 

 

 

 

 

 

 

 

 

1

 

Total real estate loans

 

 

2,361

 

 

 

489

 

 

 

 

 

 

2,850

 

Commercial and industrial loans

 

 

5,213

 

 

 

92

 

 

 

 

 

 

5,305

 

Equipment financing agreements

 

 

570

 

 

 

6,749

 

 

 

 

 

 

7,319

 

Total

 

$

8,144

 

 

$

7,330

 

 

$

 

 

$

15,474

 

 

The Company recognized $11,000 and $26,000 of interest income on nonaccrual loans for the three months ended September 30, 2024 and 2023, respectively. Interest income recognized on nonaccrual loans for the nine months ended September 30, 2024 and 2023 was $49,000 and $160,000, respectively.

 

The following table details nonperforming assets as of the dates indicated:

 

 

 

September 30, 2024

 

 

December 31, 2023

 

 

 

(in thousands)

 

Nonaccrual loans

 

$

15,249

 

 

$

15,474

 

Loans receivable 90 days or more past due and still accruing

 

 

241

 

 

 

 

Total nonperforming loans receivable*

 

 

15,490

 

 

 

15,474

 

Other real estate owned (“OREO”)

 

 

772

 

 

 

117

 

Total nonperforming assets**

 

$

16,262

 

 

$

15,591

 

 

 

 

 

 

 

 

* Excludes a $27.2 million nonperforming loan held-for-sale.

 

** Excludes repossessed personal property of $1.2 million and $1.3 million as of September 30, 2024 and December 31, 2023, respectively.

 

 

OREO of $0.8 million and $0.1 million is included in prepaid expenses and other assets in the accompanying Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023, respectively.

 

Loan Modifications

 

The following table presents loan modifications made to borrowers experiencing financial difficulty, by type of modification, with related amortized cost balances, respective percentage shares of the total class of loans, and the related financial effect, for the periods indicated:

 

 

 

Term Extension

 

 

 

 

Amortized Cost Basis

 

 

% of Total Class of Loans

 

 

Financial Effect

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

Three and nine months ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans

 

$

20,060

 

 

 

2.0

%

 

1 loan with term extension of 6 years

 

 

 

The modified loan above is current at September 30, 2024.

 

No loans were modified to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2023.